Divorce and Your Mortgage

Using Canada’s Spousal Buyout Program

“40% of all marriages in Canada ending in divorce. I think it’s important for people to understand all their options around what to do with their jointly owned home.

Separating from a spouse can be emotionally draining and none of us enter into a relationship planning for it to end.  Naturally we may not consider this possibility when it comes to planning for our mortgages either.  40% of all marriages in Canada ending in divorce. I think it’s important for people to understand all their options around what to do with their jointly owned home. Most people who are going through a separation feel forced to sell the home as a way of cleaning up joint debt and dividing joint equity. But, there is another way through Canada’s Spousal Buyout Program.

You Have Options for Your Mortgage

The Spousal buyout program was created to assist those going through a separation. This program (accepted by all three mortgage insurance providers) is designed for the instance that one individual wants to maintain ownership of the home. It allows borrowers to refinance a home back up to 95% of its appraised value.  This mortgage can payout the exiting spouse their portion of the equity. The home owner’s equity can also be used to pay off debt explicitly noted as their responsibility in the signed separation agreement. In order to qualify, both you and your ex-partner must currently be on the title to the property.  In addition to this you’ll also need to have a legal separation agreement. The agreement will need detailing division of assets/debts, along with any support payments.  It’s likely an appraisal will be needed to determine the current fair market value of your home. 

If you have concerns about being able to qualify to keep your home on your own you still have options! The Spousal buyout program was designed to help by allowing you to bring on a cosigner. This could be an existing family member or even a new partner.

As part of your separation planning it’s a good idea to meet with me prior to finalizing your separation agreement.  Understanding what you and your ex-spouse can do with your largest asset (your home), will hopefully help to move the process forward with a reduced amount of anxiety for all

Moving on is difficult, but this program allows you to maintain some feeling of normalance by ensuring you, and your children, can remain in the home you love.

To start on your application use the apply now link below. Or to chat about your options, book a call with me today.